Iran Fires Missiles as U.S. Weighs 60-Day War Pause Deal

CNBC reported Thursday that Iran’s armed forces launched missiles at unidentified targets in the country’s south, hours after a White House official confirmed that Washington and Tehran had reached a tentative Iran war pause deal.

A Fragile Ceasefire Extension Hangs in the Balance

U.S. and Iranian negotiators are said to have largely agreed on a 60-day memorandum of understanding. The agreement would extend an existing ceasefire and open the door to nuclear talks. President Donald Trump has not yet given final sign-off on the document. White House officials told CNBC that Iranian counterparts appear ready to sign. Tehran itself has yet to publicly confirm its senior leadership approved the terms.

Treasury Secretary Scott Bessent struck a cautious tone at Thursday’s White House briefing. He described ongoing back-and-forth between negotiating teams but stopped short of confirming a deal existed. Trump’s conditions remain firm, Bessent said. Iran must surrender its highly enriched uranium, abandon nuclear weapons ambitions, and guarantee free passage through the Strait of Hormuz.

Escalation on Multiple Fronts

The diplomatic signals arrived alongside sharp military and economic moves. The Pentagon confirmed Iran fired a ballistic missile toward Kuwait. Attack drones were also deployed in and around the strait. The U.S. Treasury simultaneously sanctioned Iran’s newly formed “Persian Gulf Strait Authority,” the agency Tehran established to assert control over transit fees on the vital oil shipping route.

Bessent issued a direct warning to Oman, which has reportedly explored arrangements with Iran over strait tolls. He posted on X that Treasury would aggressively penalise any actor, direct or indirect, involved in facilitating such a scheme. That warning followed Trump’s blunter Cabinet-meeting remark that Oman would “behave or we’ll have to blow ’em up.” Bessent later said the Omani ambassador called him Thursday morning and confirmed no tolling plans were in place.

Background: Three Months of War and Economic Pressure

The conflict between the U.S. and Iran has now stretched past three months. The Trump administration has run two parallel campaigns throughout. “Operation Epic Fury” described the military phase. “Operation Economic Fury” has since taken precedence, focusing on financial strangulation of Tehran’s revenue streams. Sanctions on the Persian Gulf Strait Authority represent the latest escalation in that economic effort.

Markets moved higher Thursday regardless, drawing optimism from reports of diplomatic progress. Trump, for his part, told reporters he sees no urgency to close a deal ahead of November’s midterm elections.

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